Shares of Coal India jumped nearly 4% in morning trade on September 2, emerging as the top gainer on the Nifty 50, even as the broader market faced a sharp selloff. The stock climbed to around ₹418, taking the state-run miner’s market capitalisation close to ₹2.6 lakh crore. The rally came after Coal India filed draft papers for an IPO of its wholly owned subsidiary Mahanadi Coalfields, proposing to sell a 10% stake in the company. The development was further supported by positive brokerage commentary on strong thermal coal demand, declining inventories and the potential for higher e-auction premiums following Coal India’s August operational update. Under the proposed IPO, Coal India plans to sell up to 66.18 crore shares, representing a 10% stake in Mahanadi Coalfields. The issue will comprise entirely an offer for sale (OFS), with no fresh shares being issued by Mahanadi Coalfields. Consequently, the subsidiary will not receive any proceeds from the IPO. Mahanadi Coalfields, which has a significant presence in Odisha, accounted for around 21% of India’s domestic coal production and 28.4% of Coal India’s total output in FY26. For the year ended March 2026, its net profit declined about 1.3% to ₹10,678 crore, while revenue fell 2.6% to ₹30,550 crore. Coal India had announced in March that it could divest up to 25% stakes in Mahanadi Coalfields and South Eastern Coalfields through IPOs or other routes. The company has already listed Bharat Coking Coal and Central Mine Planning & Design Institute this year.

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